ZwNews.com
The Minister of Finance and Economic Development Mthuli Ncube has abolished the publishing of the country’s year on year inflation by the Zimbabwe Statistical Agency (ZimStat).
Presenting the mid-term fiscal policy review, to parliament yesterday, Ncube said Zimbabwe would defer publication of year-on-year inflation by ZimStat, until sometime in 2020 following the adoption of a new currency in June.
However, economic watchers believe that is not a good idea, to abolish the tracking of the country’s inflation. They say every nation should always be able to check how its economy is performing and would help in making informed decisions.
Former Minister of Finance and Economic Development, Tendai Biti says it does not pay for government to employ the ostrich syndrome, of hiding its head in the sand, so as not to face reality.
He describes the move as an act of total madness.
“It is illegal to ban ZimStat from publishing annualised inflation figures. That is total madness, you can not rig inflation.
“You can not contain inflation by hiding the figures,” he says.
Biti believes with the recent increase in the price of fuel, and the hiking of electricity tariffs announced by the government yesterday, inflation will shoot by the roof.
Prices of basic goods and services have more than doubled since June, and still rising, piling pressure on citizens struggling with shortages. The situation is expected to persist, as announced by Ncube who said the country’s expected growth would be depressed in 2019, as a result of drought.
Stirring memories of economic mess a decade ago, when unchecked money-printing by the authorities fuelled hyperinflation and forced the country to abandon its currency in 2009.
Meanwhile, the country has a proven track record of downplaying inflation figures as the authorities try to hide the extent of the economic downturn and rot. The government has never liked the idea of presenting facts on the ground, but chose misinforming citizens, hiding the figures that present the gory picture of state of affairs.
Meanwhile, renowned world economic analyst Professor Steve Hanke, has bemoaned the hiking of taxes announced by Ncube, says there is always a limit to which taxable can be bearable.
He also believes the downplaying, and distortion of inflation by the Zimbabwean authorities is bad for the nation.
“In the past, I have been the only source of accurate inflation rate for Zimbabwe.
“Now that Ncube has announced the government will stop publishing inflation, I am the only source for Zimbabwe’s inflation rate,” he says and urged Zimbabweans to follow him on his social media platforms in order to get updates.
